How to Use Collection Letter Templates

When you run a business, there are, unfortunately, times when you may have to resort to sending out a collection letter. You can draft one yourself each time or you can use pre-formatted templates and fill in the relevant information. Follow some general guidelines in choosing and completing collection letter templates in order to get paid.

Instructions

1. Choose a collection letter template that is no more than one page in length. Most customers won't read past the first page so shorter is better.

2. Read the template to make sure the language used is easy to understand. Sentences should be brief with paragraphs that contain no more than two or three sentences each. The wording should convey a sense of urgency while remaining respectful.

3. Look for a template that reflects your collection policy or allows you to insert a custom policy. If you charge interest on an unpaid balance, make sure there is a place to fill in that amount. In addition, the entire template should reflect your method of doing business. If you send a strongly worded template, you will have to back it up.

4. Resist choosing a template that uses apologetic wording. Look for a firm tone that is not threatening.

5. Fill in the template with the needed information to inform the customer of your intent without alienating them. Offer a payment plan, if feasible, before threatening to turn the account over to a collection agency.

6. Request payment in full by a specified date. Include the customer's account number and make sure the dates of all charges and payments appear. The account balance should be emboldened or in a larger font.

Tips & Warnings

• Consider using business letter software that allows you to customize a collection letter to suit different situations and customers.